Bruce Bullock

The Strategic and Tactical Use of Cash-Value Life Insurance in Retirement

Life Insurance is Tax-Free and Non-Qualified Monies Most retirees think of their retirement income in terms of their qualified plans, such as defined-benefit plans that work like pensions or defined-contribution plans that work like 401(k)s. But you need non-qualified monies for strategic and tactical planning in retirement to maximize your income and minimize your taxes so you can keep more of your money. Cash-value life insurance is a non-qualified asset and can generate non-reportable income—it can be a retirement plan in itself. But more and more, it’s being used in strategic- and tactical- planning scenarios to generate more net...

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Life Insurance Can Generate Tax-Free Income Via Policy Loans

Cash-Value Life Insurance Offers Multiple Crediting Methods Cash-value life insurance has been a supplemental retirement resource and complement to qualified plans for decades. It was used to augment retirement income, so it was looked upon as a secondary-support product. But now, in some planning circles, cash-value life insurance has taken the post-position in the competitive race as a tax-advantaged resource for retirement. First some important caveats: Tax-free policy loans from cash-value life insurance are significant advantages as products, but only if the contract is designed to comply with the TAMRA regulations that allow tax-free policy loans. In addition, the...

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Millennials May Opt out of ERISA Plans & Opt into Tax-Free Strategies for Retirement

New Tax-Free Retirement Strategies May Supplement Traditional 401(k)s & IRAs Most working Americans are not in a high-effective tax bracket and many don’t receive an employer contribution match. So why glorify a minimal tax deduction on contributions today, only to pay significantly more taxes later in tomorrow’s retirement? Why should you subject your money to the regulatory rules of ERISA plans when you can have much more flexibility outside ERISA’s jurisdiction? Four tax-free strategies may generate more net-spendable income than any retirement plan before. Now keep in mind, if you are in a high-effective tax bracket, then you may...

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The Number-One Annual Expense for Seniors May Be Taxes

Managing Taxes in Retirement Can Dramatically Increase Cash Flow When it comes to retirement income, every dollar counts. There’s no middle-class senior blowing through money like there’s no tomorrow. Many retirees are on a budget with little room to spare. One unforeseen bill can dig a financial hole that may take months to crawl out of, and for many it’s so unnecessary. Managing your taxable retirement income is the key to creating cash flow and discretionary dollars at the end of every month. The number-one annual expense rarely listed as a budget item is taxes. Implementing a few simple...

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